Lara Options Sergipe Potash Project To Talon Metals
(TSX Venture: LRA) Lara Exploration Ltd. is pleased to report that it has entered into an Agreement with Talon Metals Corp. (TSX: TLO), whereby Talon has been granted an option to earn a 75% interest in Lara’s Sergipe Potash Project in northeast Brazil. To earn its interest, Talon must pay Lara US$500,000 and undertake a minimum US$4 million in exploration work programs, both over four years, and deliver a Resource Report on the Project by late 2014. Talon will be the operator of the work programs, which must include at least five drillholes targeting potentially economic potash-bearing evaporite sequences. Following exercise of its option, Talon and Lara will form a joint venture for the continued exploration of the Project and Talon will continue as operator.
The Sergipe Potash Project (see Lara news release of June 22, 2009) comprises two separate license blocks, with a total area of 14,114 hectares, which are contiguous with Talon’s Capela and Panqueca potash prospects and cover the strike extension trend of the known potash deposits in Vale’s Taquari-Vassouras Mine. A significant amount of exploration data is available on the Project from the oil and gas industry, which includes geological and geophysical data from 11 oil wells. Two of these wells intersected a cumulative 37 and 5 metres of potash mineralization respectively, in ten and two individual potash-bearing horizons, at depths between 1,300 and 1,800 metres. Furthermore, data is available for at least 30 2-D seismic lines over the Project.
“We believe the logic of consolidating the potash exploration ground on the northern and north-eastern boundary of Vale’s Taquari-Vassouras mine is compelling and represents an opportunity for Lara to participate in a major potash play” commented Miles Thompson, President and CEO of Lara.
The Sergipe Potash exploration licenses are held through Lara Aliança Ltda., a Brazilian company owned 100% by Lara Alliance BVI Ltd., which is in turn owned 50% by Lara and 50% by Sprott Resource Corp/ (TSX: SCP). Lara is in the process of acquiring the 50% owned by Sprott (see Lara news release of December 4, 2009).
Lara is a well-capitalized prospect generator, with a multi-commodity exploration portfolio focused on Brazil, but with significant holdings in Colombia and Peru. Lara’s common shares trade on the TSX Venture Exchange under the symbol “LRA”.
For further information on Lara Exploration Ltd. please consult our website www.laraexploration.com or contact: Miles Thompson – President, 604-669-8777.
Julia Maxwell - (604) 669-8777
Chris MacIntyre - (416) 640-1932
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.